Deutsche Bank lowers expectations for Scorpio Tankers

Weakened rates in product tanker have now prompted Deutsche Bank's shipping analyst to lower his earnings projections for Scorpio Tankers in the third quarter. Overall, it does not look good for tanker in the third quarter, and dividends for 2017 are set too high, notes JP Morgan.

BY DANIEL LOGAN BERG-MUNCH

A stronger oil price combined with a large orderbook in the tanker sector is giving rise to renewed fears of future overcapacity in the tanker market, and this development has put downward pressure on product tanker rates in recent months after several booming years for carriers such as Scorpio Tankers which have bet big on this market.

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Scorpio Group does away with maligned fees
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Deutsche Bank: Tanker owners heading for new upturn
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Analysis: Low tanker rates will continue in 2017 and 2018
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